NYC Still The Wild West

In most parts of the country, in fact in all parts of the country except NYC, when a buyer and seller of a home agree to the terms of a deal, including the price, the property is then taken off of the market. Typically, the buyer gives the seller a nominal amount of money up front, usually a couple of thousand dollars and both parties sign a "Binder". This is basically an agreement stating that the buyer has 10 days to have the property inspected and to do what ever other due diligence he wants to do. At the end of the ten days either they sign a contract of sale or the buyer backs out and forfeits his binder money. Its fair, its civilized and it works.

In NYC the rules are a bit different, in fact, one might say that there are no rules. How it differs lies primarily with the Seller. The Seller or his listing broker continue to market and show the property while the buyer is doing his due diligence. The rationale is that the seller is protecting himself in case the buyer finds something wrong with the property or simply changes his mind. However, what often happens is that the seller receives an alternative offer which is higher than the agreed upon price. The first buyer is then pushed aside in favor of the second buyer with the higher price....unless of course the first buyer wants to increase his offer. When you are the buyer or the buyer's broker this can be an infuriating situation. But, when you are the seller or are representing the seller you smile all the way to the bank.

Moral of the story...Time Kills Deals...once you have an accepted offer get the contract signed asap.